KELLOGG, Idaho, July 26, 2005 (PRIMEZONE) -- New Jersey Mining Company (OTCBB:NJMC) announces that it has received a final go-ahead for its operating plan at the Silver Strand mine from the U.S. Forest Service (USFS), Panhandle National Forest. A favorable decision had been made in March of this year but an appeal by the Idaho Conservation League (ICL) has delayed commencement of operations. The ICL appeal was denied and the March decision was affirmed recently.
The Operating Plan can be implemented as soon as the Plan is updated with stipulations made by the USFS, a road use agreement is completed, and a reclamation bond is posted.
Development work is planned to commence by September or October this year. This work may include the installation of a sediment recovery system, the construction of a shop building, and initial road building. Production is planned for June of 2006, but will be dependent on the company's ability to secure financing. An existing ore stockpile of about 150 tonnes will be milled during the next three months.
The Silver Strand mine contains reserves of silver-gold ore that will be mined and shipped to the Company's mill near Kellogg, Idaho. Currently, ore reserves and resources stand at 17,500 tonnes with a grade of 5.87 grams per tonne (0.171 ounces per ton) gold and 337 gpt (9.8 opt) silver. The primary focus of the mining operation will be to expand the silver-gold resource by exploring the orebody at depth by driving a ramp downward, and at the same time recover gold and silver from the ore to help finance the exploration. A mining rate of 1,000 tonnes per month is planned for the Silver Strand in a seasonal operation typically operating from April through November.
Management thinks that the Silver Strand is an excellent exploration property with potential for a deposit containing up to 100 million ounces of silver equivalent. A comprehensive geophysical survey has recently been completed to help understand the structure of the mine area and to reveal extensions of the known mineralization which are obvious drill targets. A second prong of the exploration plan for the Silver Strand will be to drill these geophysical anomalies from the surface and underground. One of the geophysical anomalies will be intercepted by the ramp planned for the mining operation.
New Jersey Mining Company is involved in exploring for and developing gold, silver and base metal ore resources in the Coeur d'Alene Mining District of northern Idaho. The Company has a portfolio of mineral properties in the Coeur d'Alene Mining District including the New Jersey mine, the Silver Strand mine, the Golden Chest mine, the CAMP project, the Scotch Thistle project, and the Silver Button project.
This release contains certain forward-looking statements within the meaning of the Federal Securities Laws. Such statements are based on assumptions that the Company believes are reasonable but which are subject to a wide range of uncertainties and business risks. Factors that could cause actual results to differ from those anticipated are discussed in the Company's periodic filings with the Securities and Exchange Commission, including its annual report on Form 10-KSB for the year ended December 31, 2004.
Further information about New Jersey Mining Company can be reviewed on the website of the Securities and Exchange Commission at www.sec.gov or on the company's website at www.newjerseymining.com.